On the heels of a 38 percent profit drop in first quarter profits last
week and slowing sales growth in the personal computers market, Intel CEO Paul Otellini stated that there would be major changes in the company to improve efficiency. Otellini said Intel will look at ways of cutting costs per unit, increasing employee
productivity and implementing immediate changes to underperforming business
units over the next 90 days.

Otellini also stated that
this restructuring will focus on every aspect of the chip maker’s operations. "No stone will remain unturned or unlooked
at," claimed the CEO. “You will see a leaner, more agile and
more efficient Intel Corp." Intel underwent a similar change under Otellini's direction two years ago, which resulted in several project terminations such as LCoS research. Flash memory looks to be one of the largest projects on Intel's cutting board, losing over $100M USD in Q1'06 alone.

Intel will also
be introducing three new chips over the summer to refresh its product lines.
Woodcrest for servers will be released in June, Conroe for desktops in July
and Merom for notebooks in August.

“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith